Cancellation of GST Registration: Delhi HC quashes Order passed in Non-Consideration of Rectification Application for Apparent Error [Read Order]

In a significant case the Delhi High Court while observing the Goods and Service Tax (GST) registration quashed the order passed in non-consideration of the rectification application for apparent error.

The writ petition was filed by the petitioner Bansal Steels by praying that directions be issued to the respondent to rectify the order of cancellation of the petitioner’s GST registration.

The petitioner had applied for cancellation of its GST registration for the first time on 04.12.2018 and stated that the reason for seeking such cancellation was that it had discontinued/closed its business.

The said application was rejected on 11.02.2019. Again a second application for cancellation of registration was filed by the petitioner. It was accepted and its registration was canceled by order dated 12.02.2019 with effect from 01.02.2018 as sought by it.

Further the respondent has not acceded to the petitioner’s request to rectify the same apparent error in the petitioner’s application and consequently, in the order dated 12.02.2019. Against this order petitioner filed writ petition.

Rakesh Kumar A counsel for the petitioner relied upon the decision of the RPG Polymers v. Commissioner of DGST Delhi and Anr, submits that the errors, which are apparent on the face of the record, are required to be rectified under Section 161 of the Central Goods and Services Tax Act, 2017.

R. Ramachandran counsel for the respondent submits that “since the petitioner had disclosed its reason for seeking cancellation in the first application dated 04.12.2018 as the closure of business, there was no question of the petitioner filing any returns for the period thereafter. Also petitioner’s request for rectification of the order dated 12.02.2019 was highly belated”. After considering the contentions of both parties the Division bench of Justice Vibhu Bakhru and  Justice Amit Mahajan allowed the writ petition filed by the petitioner and observed that “in the contention of the respondent that there were no grounds to doubt the petitioner’s statement that its request for cancellation of GST Registration with effect from 01.02.2018 was an apparent error. It is apparent that the petitioner had meant to seek cancellation of the registration with effect from 01.02.2019 and had filed returns till January 2019”.

To Read the full text of the Order CLICK HERE

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